Anything & Everything Costa Rica

New Pizza Hut concept stores in China help frugal diners save. Will the same be in Costa Rica?

RICO’s Q — With almost 50 stores, the international Pizza Hut franchise in Costa Rica is the “popular go-to” for pizza.

Arriving in the country in 1972, the franchise can may claimg they have managed to be part of the history of many Costa Rican families. Their famous “red roof” locations where once the place to dine for many.

However, times are a-changing! The consumer price is a factor. And that means adapting.

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In China’s sluggish economy, the fast food giant is opening stores that offer smaller, cheaper versions of its favorites to attract cost-conscious diners, a strategy its parent Yum China, is also using for other brands.

According to a report by Reuters, in the busy Bao An District of Shenzhen, a small lunchtime queue stood outside the recently opened Pizza Hut Wow store, which sells smaller pepperoni pizza servings for 29 yuan (US$4 or ¢2,000 colones), pastas for around 15 yuan, and a steak for 35 yuan, all priced significantly less than at traditional Pizza Hut restaurants.

The first Pizza Hut Wow store opened in Guangzhou in May and there are now more than 100 around the country, with a target of 200 by the end of the year, Yum China said.

“Pizza Hut is entering a price level that they didn’t cover in the past, I think it’s the right thing to do,” said Joey Wat, Yum China’s CEO. “The winner will be highly cost-effective, with a good service system. Its supply chain must be very mature. If you are not a big company you won’t be able to have these resources.”

Could the “Wow” concept come to Costa Rica soon?

During the last few years, Costa Rica experienced an upward trend in its Gross Domestic Product (GDP). This economic growth was sustained by trade, investment, political stability, and fiscal discipline.

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Statistica reported in July (2024), “Costa Rica is often praised as a small but open economy in the heart of Central America. The economic growth and its relative peacefulness have created a positive spotlight for foreign investment and constant development (…) Nevertheless, some problems remain unsolved such as high unemployment and young unemployment, over 40% of the employees working in the informal market, high poverty rates, and longtime inequality.”

This trend may also lead to increased competition among brands in different sectors as they compete for customers.

In running my one-store pizza chain in downtown Santa Ana, I can conclude that consumers are expected to be more focused on prices, and the innovative concept introduced by the international franchise could serve as a successful example for our country.

My “wow” is keeping the cost of a slice at 1MIL (¢1,000 colones) AND offering specials during the week, such as medium (personal) pizza for 3MIL and a large for 3MIL one day and similar discounts on other days.

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